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What’s important in Asia this week

Raghuram Rajan
Munshi Ahmed | Bloomberg| Getty Images
Raghuram Rajan

India should remain firmly in focus this week, as a new central bank governor takes the helm at a time of financial crisis in Asia's third largest economy. He's not the only central banker in the spotlight with the Reserve Bank of Australia and Bank of Japan scheduled to meet this week.

In China, economic data could be scrutinized closely for more signs of a pick-up in economic growth, while attention is likely to turn to the prospects for an unwinding of U.S. monetary stimulus with the release of the closely-watched U.S. non-farm payrolls report Friday.

(Read more: Syria hangs over market while traders await job report)

Raghuram Rajan officially becomes the new governor of the Reserve Bank of India (RBI) this week, taking over as the rupee tumbled almost 20 percent against the dollar this year and confidence has been hit hard by India's wide current-account deficit.

(Read more: India's woes deepen as GDP misses expectations)

Analysts say the priority of the new RBI chief should be to stabilize the currency, which hit a record low close to 69 per dollar last week. The currency has bounced back a little in the past two trading sessions.

"Rajan is the best [central bank governor] India could get and it is a coup to get him at this time," Nizam Idris, head of strategy for fixed income and currencies at Macquarie Bank, told CNBC Asia's "Squawk Box" on Monday.

(Read more: Is a Volcker on the cards for the RBI?)

"He needs to bang on the table and say: we need to stabilize the currency by hook or by crook. Further out, it will be up to the government to help out," he added.

Don't forget RBA, BOJ

The Reserve Bank of Australia (RBA) meets on Tuesday, while the Bank of Japan (BOJ) concludes a two-day meeting on Thursday. The Bank of England and European Central Bank also meet Thursday.

No major changes are expected from the RBA and BOJ. The RBA cut its key interest rate to a record low in August and is not expected to act ahead of this weekend's election.

(Read more: Australia cuts rates by 25 basis points to record low of 2.5%)

"Given the proximity to the election and its [the RBA's] signal that another interest rate cut is not imminent, rates are likely to be left on hold," Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in a note.

"However, the post meeting statement is likely to retain an easing bias, particularly with the capex [capital expenditure] outlook weakening further and inflation benign, which the RBA is likely to act upon at its October or November meetings unless the Aussie dollar falls rapidly," he added.

China recovery?

Elsewhere, data on Monday showed the final reading of HSBC's August purchasing manager's index (PMI) for China's manufacturing sector rose to 50.1 from 47.7 in July.

That follows the official PMI data from China on Sunday which showed factory activity expanded at the fastest pace in more than a year.

(Read more: China official PMI hits 16-month high in August)

The data is the latest sign of stabilization in China's economy, which has slowed quickly in recent months.

"Things do appear to have now stabilized in China," Paul Krake, founder of the consultancy View from the Peak: Macro Strategies, told CNBC.

—By CNBC.Com's Dhara Ranasinghe; Follow her on Twitter: @DharaCNBC

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